GameStop to Close More Stores, Invest Heavily in Bitcoin

NEW YORK — GameStop Corp. has announced plans to close a significant number of its remaining retail locations while also pivoting towards investing in cryptocurrencies, particularly Bitcoin. This marks a continuation of the company’s struggles as it adapts to evolving consumer shopping habits.

In a regulatory filing made on Tuesday, GameStop revealed it expects to shut down a “significant number” of additional stores in the coming months. However, specific locations have not yet been identified. This announcement follows the closure of approximately 1,000 stores globally over the past year, resulting in a reduction of its total locations to 3,203 as of early February 2025.

Of the closures, the United States accounts for the majority, with 590 locations shuttered, leaving 2,325 stores operational. Europe saw over 330 closures, accompanied by nearly 50 stores closed in Canada and Australia. The drastic decline from a peak of 6,000 locations a decade ago underscores the company’s ongoing challenges amidst a changing retail landscape.

Neil Saunders, an analyst at GlobalData Retail, commented, “The pivot to Bitcoin is really a defense against irrelevance,” highlighting that the shift indicates GameStop is moving away from traditional retail towards becoming a cryptocurrency investment vehicle.

GameStop has faced increasing difficulties as consumers shift toward online gaming and streaming purchases, altering the way games are sold. The company previously gained attention during the 2021 ‘meme stock’ phenomenon, which temporarily boosted its stock prices.

Amidst a retail landscape where numerous companies, including Joann, Forever 21, and others, have closed locations or gone out of business, GameStop’s decisions reflect broader economic pressures. These include continued inflation affecting consumer spending and a failure by some retailers to adapt to modern shopping behaviors.

As part of this new strategy, GameStop plans to allocate a portion of its cash and future debt or equity issuances into Bitcoin, aiming to stabilize its financial position in an unpredictable market. The company’s stock surged by 16% in premarket trading following the announcement, indicating a positive reception from investors.

GameStop’s transformation strategy highlights the ongoing challenges in the retail sector while also presenting a new frontier with cryptocurrency investments.